Asure Software's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Asure Software, Inc. (ASUR)

Q2 2012 Earnings Call

August 14, 2012; 11:00 am ET


Patrick Goepel - President, Chief Executive Officer

David Scoglio - Chief Financial Officer, Secretary

Cheryl Trbula - Investor Relations


Thomas Pfister - RedChip Company

Don Sinsabaugh - Fulcrum Securities



Good day ladies and gentlemen and welcome to the Asure Software Corporate Conference Call. My name is Shannon and I will be your coordinator for today. At this time all participants are in a listen-only mode. We will facilitate a question-and-answer session towards the end of today’s presentation. As a reminder today’s call is being recorded.

I would now like to turn the call over to Cheryl Trbula of Asure Software. Please proceed.

Cheryl Trbula

Thanks you Shannon and welcome everyone to Asure Software’s conference call. Before we start, I’d like to mention that some of the statements made by management during this call might include projections, estimates and other forward-looking information. This will include any discussion of the company’s business outlook.

These particular forward-looking statements and all of the statements that maybe made on this call that are not historical are subject to a number of risks and uncertainties that could affect their outcomes. You are urged to consider the risk factors relating to the company’s business contained in our latest periodic reports on file with the Securities and Exchange Commission. These risk factors are important and they could cause actual results to differ materially.

This call is also being recorded on behalf of Asure Software and is copyrighted material. It cannot be re-recorded or re-broadcast without the company’s expressed permission and your participation implies consent to the calls recording.

After we’ve completed our review of the quarter, we will open up the call for questions from the financial analysts community.

I would now like to turn the call over to Pat Goepel, CEO of Asure Software. Pat.

Pat Goepel

Thanks Cheryl and I would like to welcome all investors, clients, employees, interested third patients to the Asure Software second quarter conference call. We in short were very, very pleased with the second quarter.

Highlights of our activities in the second quarter, first of all, we had total new orders of cloud booking that were up 10% year-over-year and we are definitely making traction in bookings.

Evidence of that, in net simplicity we had new orders from AT&T Labs, University of Chicago, the U.S. Department of Treasury and the University of Tennessee.

In the AsureForce, which is our time and labor management, we are very pleased with large sales of Visionees (ph) and Parker Hannifin. We also were thrilled with the new partnership that we announced in a press release of MPAY.

MPAY is perhaps the fourth largest payroll provider in the United States and they are embedding time and labor management in their small end solution or small business solutions and they are also partnering with us in the mid market and Jeff Duke over MPAY who is the President is somebody that I’ve been discussing this partnership for quite some time and we are just thrilled with the partnership of MPAY and we think that’s going to lead to results for years to come.

From a revenue side, we came in at $4.2 million and our guidance was $4.1 million to $4.2 million, so we are very pleased with the revenue. EBITDA ex-one time items of $838 million and EPS ex-one time items of $0.03 and the EBITDA naturally is $838,000, not million.

But we are also in the middle of delivering those results. We closed on an acquisition of PeopleCube in the first week of July. So a lot of our activity was moving forward with the PeopleCube. I will say and I will talk a little bit more about this later, but the integration efforts are going extraordinary well. We are very pleased with the culture of the employees, the clients, the synergies are immense and we think that that’s going of to a very, very quite start.

We also in the quarter, I would like to remind you, we have a three for two stocks split on May 1 and we did that because we did hear for you that you’d like to buy more stock and you wanted more stock available and some of you were saying that the float ultimately should be around 10 million shares. Now we are about 5 million or so, a little bit more than that and the stock continues to progress. We will be open to stock split in the future.

Also we made great progress organizationally. We had to prepare for the acquisition of PeopleCube and we did that. We did close India and in the process of closing that we took a charge and we thought that was the right think to do. We are centering around Austin, Texas and the greater Boston areas, including Warwick, Rhode Island.

We also made great progress this quarter in our products. From a AsureForce perspective we rolled out our new version, our SAP version, version 11. We had clients that signed up and we also rolled that out to our partner programs, so we are excited about that progress and we think the results will enable us to hit third and fourth quarter where we have a big revenue ramp and we feel really good about the challenge of that revenue ramp.

And then finally in AsureSpace, we rolled out a panel strategy. Our clients who told us that they love their software, they are also want to embed our software into the panels outside the meeting rooms and we signed up some clients already on that and we are excited about the panel strategy that we rolled out.

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